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Home Technology Gulf Data Hub, KKR to invest over $5 billion to build GCC data center capacity

Gulf Data Hub, KKR to invest over $5 billion to build GCC data center capacity

Transaction marks one of the largest international investments into a UAE-founded and managed business
Gulf Data Hub, KKR to invest over $5 billion to build GCC data center capacity
Gulf Data Hub's strategic partnership with KKR will enable it to leverage its deep expertise, positioning it to achieve its regional ambitions (Image: WAM)

Gulf Data Hub and KKR, a leading global investment firm, announced today that funds affiliated with KKR will acquire a stake in Gulf Data Hub. The investment, which is subject to customary regulatory approvals, is being made through KKR’s Global Infrastructure strategy.

The transaction marks one of the largest international investments into a UAE-founded and managed business in a fast-growing sector that benefits from high demand and major competitive advantages, reaffirming the UAE’s leadership in accelerating digital and AI capabilities.

Upon completion, Gulf Data Hub and KKR have committed to support over $5 billion of total investment to grow Gulf Data Hub’s market-leading position and to support its international growth plans through organic and inorganic strategies.

“This milestone underscores the strength of the UAE’s digital economy, enhances the journey of growth, and aligns with the National Strategy for Digital Economy. Building on the momentum of 2024, marked by the launch of numerous data centers, it represents a strong start to 2025 and reaffirms the UAE’s dedication to strengthening its digital infrastructure,” stated Omar Sultan Al Olama, UAE’s Minister of State for Artificial Intelligence, Digital Economy and Remote Work Applications.

Gulf Data Hub set for expansion

Established in 2012 and headquartered in Dubai, Gulf Data Hub is one of the largest independent carrier and vendor-neutral data center platforms in the Middle East with significant operating capacity and a pipeline of projects.

With an owned portfolio of seven purpose-built and state-of-the art data centers in the UAE and Saudi Arabia, and additional facilities planned in Kuwait, Qatar, Bahrain and Oman, Gulf Data Hub focuses on delivering the infrastructure to meet hyperscale demand across the region. It also seeks to support the increasing data consumption driven by the growing trends in digital connectivity, cloud and artificial intelligence.

“Today marks a milestone in our growth journey as we welcome KKR, a global leader in digital infrastructure investing, as a strategic partner in our business. Over the past 12 years, Gulf Data Hub has grown into one of the most successful data center platforms in the region, supporting the business needs of sophisticated cloud and enterprise software customers,” stated Tarek Al Ashram, founder and CEO of Gulf Data Hub.

Gulf Data Hub’s strategic partnership with KKR will enable it to leverage its deep expertise, positioning it to achieve its regional ambitions and deliver on its mandate of being a partner and provider of choice.

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KKR expands Middle East investments

“Our investment in Gulf Data Hub aligns with our conviction in digital infrastructure and enables us to leverage our global connectivity to drive value and accelerate the growth of a leading business in the region. It also reinforces KKR’s continued commitment to the Middle East, following our landmark investment in ADNOC Oil Pipelines as well our work with Etihad alongside Altavair AirFinance, added Tara Davies, co-head of KKR EMEA and co-head of European infrastructure.

KKR has had a presence in the Middle East for over 15 years, with offices in Dubai and Riyadh. Its prior investments in the region include the strategic partnership with ADNOC to create ADNOC Oil Pipelines, marking the first midstream infrastructure collaboration between a leading global institutional investor and a national oil company in the Middle East.

KKR also acquired a portfolio of commercial aircraft from Etihad Airways in 2020 through the aircraft leasing investment platform Altitude Aircraft Leasing. To date, KKR has invested more than $29 billion across 22 investments in relevant digital infrastructure companies across data centers and fiber, as well as $15 billion in power, utilities and energy.

“As business requirements evolve, strategic investments such as the one we have forged with Gulf Data Hub will be crucial to harnessing the full potential of our digital future,” added Waldemar Szlezak, global head of digital infrastructure at KKR.

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